Top 5 Biggest Tax Returns You May Qualify For
Earned Income Tax Credit (EITC)
One of the Top 5 biggest Tax Returns you may qualify for is the EITC. In this case, it is the most substantial credit for taxpayers of Social Security taxes and it provides an incentive to work. The EITC is determined by income and filing status if single, married filing jointly or either of those, with children. Also, the amount of the credit is based on adjusted gross income, earned income, and investment income.
A person must be between 25 years and 65 to qualify
Both spouses must have valid Social Security numbers and must have lived in the country for more than 6 months.
- If you have claimed as a dependent on another’s a tax return, you do not qualify.
- You earned $3,600 in 2019 from investment income then you cannot qualify for the credit
- If you are self-employed, you may qualify, for the tax experts recommend you and check your eligibility.
American Opportunity Tax Credit (AOTC)
For several years, AOTC helped families pay the costs of higher education. Of course, the top 5 biggest tax returns in 2009, it has been rebranded and expanded.
- The AOTC covers 4 years of post-secondary education.
- The full credit is available to people whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing jointly.
- Depending on your income where credit drops as income increases, you may receive up to $2,500 of the cost of qualified tuition and course materials.
- The student has enrolled at least 6 months in one academic period.
- This credit is available for each student.
Lifetime Learning Credit (LLC)
The LLC is one of the top 5 biggest tax returns you may qualify for the costs of post-secondary education. It differs from AOTC available for a certain amount of years of post-secondary education. It is available for people who are pursuing a degree. The LLC is a tax credit that helps to reduce the tax bill for the educational expenses for themselves, their spouse, or a dependent.
- The LLC may be as high as $2,000 per student.
- Full credit is available to eligible individual taxpayers or married couples filing jointly.
- The credit phases out as income grow beyond prescribed amounts.
Child And Dependent Care Credit (CADCC)
The CADCC helps to defray the costs of babysitting or daycare. It is one of the top 5 biggest tax returns for paying childcare under the age of 13.
- To qualify, you have a single, married filing jointly, head of household, or qualifying widow or widower with a qualifying child.
- The credit provides up to 35% of qualifying expenses, depending on adjusted gross income (AGI).
Savers Tax Credit
Subsequently, one of the top 5 biggest tax returns you may qualify for is the Savers Credit, which is eligible for retirement plans. They will include qualified investment for retirement accounts, and 401(k) and taxpayers with the least income qualify up to $1,000 as single or $2,000 filing jointly.
- The filers must be at least 18 years old or be claimed as a dependent on another person’s return.
